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Benefits of Partnering with 8(a) Firms
Limited Competition There are approximately 24 million businesses in the United States and less than
9,000 active 8a firms. Large Federal Spending Federal government spent 32 Billion dollars with 8a firms in 2011. Reduction in Red Tape Sole sourcing with an 8a firm reduces or in many cases eliminates the “red tape” for the business allowing the owner of the business to run their business rather than submitting complex government RPFs. Sole source means the government can award contracts without putting them out for bid. Large Contracts The contract size for 8a firms can be quite large. Sole source contracts are available up to 4 million dollars for products and services and 6.5 million dollars for manufacturing firms. In 2010 10.3 billion dollars were sole‐sourced to 8a firms. Better Pricing 8a firms also receive better pricing than normal federal contractors. A full and open source price adjustment can be given up to 10% of the contract amount. For example and 8a firm bidding 100 thousand dollars on a contract is viewed as bidding 90,000 when compared with other non 8a firms. Joint Venturing 8a firms are permitted to partner with other firms that are either prior 8a firms or other larger federal contractors, utilizing the other firms contact, past experience and capital. Growth 8a firms have the capability of growing much faster than their peers. The Washington Post publishes the fastest growing federal IT contractors, 31 of the fastest 50 are 8a IT firms. Boosts GSA Schedule Effectiveness An 8a certification will greatly increase the effectiveness of a GSA Schedule. When a federal procurement officer visits GSA Advantage the web port hole for GSA buying those procurement officers always seek out 8a firms first. This gives 8a firms an estimated 300% advantage over their peers. Construction Contractor Friendly 8a firms are very successful in their award of federal construction contracts and therefore outperform their peers. As a result 40% of all 8a firms are in the construction field. When National Disaster strikes due to the quick nature of the 8a sole source contract 8a firms are able to step in quickly and help victims. In the past 10 years there have been 560 designated presidential disaster with $11.5 billion spent annually with a large amount of these dollars going to 8a firms. FEMA Contracts Graduation Approximately 30% of 8a firms are able to use their performance rating and contact with the federal government becoming large federal prime contractors once they graduate from the program. These companies are often having annual billing in access of a hundred million dollars. ENTERPRISE integration
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